Samsung's Crisis Management and Recovery

This assignment delves into Samsung's handling of the global recall of its Galaxy Note 7 smartphone due to exploding batteries. Students will analyze the company's crisis communication strategies, including transparency, public relations efforts, and product redesign initiatives. The focus is on understanding how Samsung managed the reputational damage, addressed consumer concerns, and ultimately recovered from this significant setback.

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samsung
Enterprise and opportunity

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Contents
Introduction................................................................................................................................2
Opportunities..............................................................................................................................2
Improvement..............................................................................................................................5
Conclusion..................................................................................................................................8
References................................................................................................................................10
Appendices...............................................................................................................................12
Appendices 1:.......................................................................................................................12
Appendices 2:.......................................................................................................................12
Appendices 3:.......................................................................................................................12

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Introduction
Samsung Electronics is a South Korean company and was established in 1969. It is one of the
largest producers of electronic devices. Currently the company became one of the bestselling
smartphones in the world. In 1990 the company expanded it’s operations in the electronic
market. It operates four divisions comprising digital media, information and communications,
semiconductors and home appliances (Lee, 2014). Samsung launched range of galaxy
smartphone series in 2000. In this report the situation has been discussed which the company
faced regarding battery in it’s Galaxy S7 model. The opportunities have been identified to
grow in the market. The options available to expand and the situations have been discussed to
improve efficiency. Further the research is also conducted to investigate the issue.
Opportunities
Samsung can grow by the opportunities available in the market. The company has strong
presence in the smartphone’s market. It expects to consolidate it’s market share by innovative
products and services. The company expects sale over 125 million. Samsung launches ‘Never
Mind’ offer in the festive season which provides one time screen replacement. The
consumers can replace the broken screen within the warranty period by paying the genuine
prices. This offer is applicable on Galaxy J, A and C series. Samsung can grab opportunities
by focussing on innovations and superior products and services. Such schemes are equally
beneficial for the company as it can help to attain loyalty of customers (Spender, 2014).
Replacing screens at lower prices can attract and give solution to the problem of customers.
The company has opportunity to expand in the market by focussing on software and services.
The company can attract customers by using fastest processors and bright screens. The
incorporate novel and high tech features can be important in increasing sales. It is enough to
bring customers back by using new material. The software, hardware and services are

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successful in appealing customers. The version of android used by company could be more
sophisticated and attractive. It can make more investment in software and hiring new
engineers which can actually result in increasing productivity of company. The company can
make changes in the design of touch wiz layer on the top of Android which has not changed
much in the last years. It can also make changes in the group play app which has not worked
well. Samsung can involve partners to accomplish the aim of giving customers a smooth and
seamless experience (Dove, 2016). Now a day’s customers run for the new software and
technologies so it is biggest advantage for the company to attract customers by enhancing
software version. Hardware is also equally advantage for the company. It can make
experiment and modification in the designing of smartphones.
Samsung has completely acquired Harman in 2017. It created extensive growth opportunities
and delivered benefits to customers. The company has further scope of expansion by
acquiring and merging expert companies. Such achievements result in captivating cash value
to customers and provide new opportunities to employees and can give benefit to customers.
In addition to this acquiring companies can help in increasing market penetration. It can
expand the business platform by delivering differentiated audio and visual experience to
customers. Samsung can attain access to the software of acquired company and can deliver
end to end service through merging of design and service. Such initiatives can provide new
offering to the customers. Acquisition has a great role in the expansion of business (Kim,
2016). The company can increase it’s market size by acquiring expert companies. It also
helps companies to acquire new talent, technologies and customers. So, the acquisition has
great importance in the growth aspect of company.
Samsung is a leader in the supply of OLED displays. It provides OLEDs to Apple Inc. Apple
has huge dependence on Samsung for OLEDs. Samsung is the only company which supplies
to Apple and has volume and best quality (Jie &Hasan, 2017). It pays $130-$140 per screen
to Samsung. The company has opportunity in the global market. It can supply screens to the
new mobile companies. It is going to help new companies and Samsung can increase it’s
business share (Uhl & Gollenia, 2016). Everyday new companies are entering in the mobile
industry. Samsung can make contract with such companies. It can actually increase side
business of company other than the supply of mobiles. The company has generated good
revenue from OLED displays which has been discussed in the appendices 3.

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International diversification is the strategy which can be used by Samsung to increase profits
by selling products in the new market. It can enhance the value of the organisation. The
organisation can sell products in the developed market by the establishment of new
enterprises. It helps organisation to achieve economies of scale. The company can diversify
through the internal expansion and modification of products (Najrani, 2016). It can expanse
externally through expansion and strategic alliances. The company can achieve international
standards by the expansion of products globally. Such opportunities impart profit to the
company and the profits of Samsung over years have been discussed in the appendices 1.
Options
Samsung have option to regain it’s image through the launch of Galaxy S8 and S8+ and new
and efficient models. The former devices are bigger and better. The specifications can help
company to overcome issues of Galaxy S7. It includes the beloved features like IP68 water
and dust resistance. It also includes the features like fast wireless charging and Samsung
DeX. The Samsung DeX is a feature which transforms smartphone into desktop computer. It
allows display and edits data from phone. It also contains the Bixby button which enables
personalized help. It is based on the interest, situation and location over time (YIN, YE &
HUANG, 2017). Other additional feature includes Samsung Pay which turns phone into
digital wallet and can be used instead of debit and credit card. It has more than 870 banking
partnerships worldwide. It has also improved the security. Now the devices are built on a
defence grade security platform known as Samsung Knox.
Samsung can solve the battery issues which Samsung faced in the models of Galaxy note7 by
options such as new protocols like multi-layer safety measure and eight point battery safety
checks. It can also form an advisory group during press conference. The company can publish
details for the battery checks. It can also conduct investigation to ensure no leakage of
battery. The issue observed with the batteries is design and manufacturing (Aiello &Cacia,
2015). So company can make required changes with the battery to overcome catching fire
and overheating.
Battery replacement is also the option which can be used by the company to improve
efficiency of organisation. The battery should be replaced by the company if the smart phone
needs to charge more often, over heat during charge or usage even if the phone discharges in
a short period of time. Charge cycles are a series of battery training which is designed to

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accept power as the battery can hold. It defines requirement of full discharge for memory
training (Henry, 2015).
Never mind offer is one of those options. It replaces broken screen at fewer prices during the
festive season. It can be beneficial for the company to make available such offers frequently.
Innovations are also the option which can be used by the company to bring expanded
batteries and new design of phones (Zuoming, Wei & Ming, 2014).
The company has further option to increase investment in research and development to
overcome battery issue and bring efficiency in the organisation. The company can enter in the
cloud business segment and increase presence in the evolving markets. Samsung can also
enter into strategic alliance with the affiliated businesses. It can grow it’s business by online
channels such as Amazon.com. It can use features which makes customers to switch on smart
phones. The company can acquire new companies which are good at tech (Thompson,
Peacock, Western& Batterham, 2015). It ensures future growth. The recent acquired firms
have brought growth in the organisation such as Harman, New Net communication and Viv.
Acquisition brings fresh talent and techniques in the organisation. So, company can further
plan to acquire firms for the efficiency of organisation.
Improvement
The price of Samsung smartphones is 1.5-2 times more than the price offered by the cheap
brands with the similar specifications. When it comes to comparison then the phones offered
by Samsung are overpriced. So the company can concentrate on the price of products and
services. It can help in improving performance of company. The other problem with Samsung
is that it does not innovate and copy design of phone from others (Kline & Hutchins, 2017).
The company need to focus on innovations. Such innovations can improve efficiency of
organisation.
The performance of company can also be improved by utilising fewer resources on the Touch
wiz UI. The company has recently faced issue regarding battery as the Samsung’s galaxy S7
drains very fast and becomes hot. The defective batteries caused various devices to explode.
The battery life has reduced from 15-18 hours to 5 hours even if the phone is rarely used. The
same issue is found in Galaxy Note 8 and Galaxy S8+. These issues are affecting latest
flagship by Samsung. Such issue is also known as deep discharge and can affect devices with
lithium-ion batteries. Samsung has been making efforts to investigate the issue. It has been

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suggested by the company to recharge phone before the battery is completely drained (Shin,
2017).
The company can solve complications related to Galaxy S7 problems, bugs and malfunctions
to improve performance. Solving problems in a smooth way can attract customers. Samsung
can make efforts to work Galaxy S8 like other phones. The users report that their phones do
not charge completely. The company need to remove issue with the finger print scanner. The
iris scanning technology can be made accessible as it is much faster and usable. The facial
recognition is also not properly working in Galaxy S7 models. It takes various attempts at
scanning. The company can easily improve facial recognition through the software updates. It
can get better over time (Jeong, Yoon & Lee, 2017).
The company has conducted investigation with 700 employees testing 200,000 phones and
30,000 additional batteries. It has been reported that the issue was caused by the irregular size
battery. After the investigation on second battery it was realised that there is nothing wrong
with the design of battery and the manufacturing issue resulted into welding defect that
caused battery to short circuit. Such investigations help in building authenticity of company.
The company also commissioned three outside test labs like UL, Exponent and TUV Rhea
inland. These companies also ended up with the similar results. According to the report of
wall street journal the issue was caused by an irregular size battery. The company has made
initiative with telecom carriers for the issue of software update. It could disable the Galaxy
note 7’s charging ability (Shamsi, Ali & Kazmi, 2017). It has also improved volume and
speed of returned units. The company can also create battery advisory group for the safety. It
is going to include leaders from recognized universities. The safety system can include:
Durability test: It conducts additional durability tests including battery securing, pressure
testing with extreme temperature and charging too much.
Visual Inspection: In the visual inspection the battery is compared with the standards. It
defines the criteria.
X-ray test: The x-ray test can be conducted to inspect issues related to battery such as
refraction of the electrode. This is one of the causes of Note 7 issue.
Take to pieces test: Take to pieces test also known as disassembling test carries a detailed
check of the quality including tab fusing and isolation tape conditions. These are the main
issues found in Note7.

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TVOC test: A sensing test is conducted to detect leakage from battery component and
complete device.
Open circuit voltage test (OCV) test: The OCV test is performed to inspect the condition of
battery by checking the change in voltage in the normal temperature.
Charge and discharge test: The large scale charge and discharge tests are performed to all the
devices which were initiated in the investigation which were found in the investigation
conducted for the Note 7.
Faster usage test: The company engaged in 2 weeks of real life usability circumstances,
which the company shortened to five day test period.

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(Source: Samsung electronics, 2018)
Conclusion
From the above report it can be concluded that Samsung is performing well and is the second
leading brand. The opportunities have been discussed in the report that helps in expansion of
company. These opportunities help in international diversification, acquisition, focusing on
software and services and by supplying OLED displays to other companies. Further the

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options have been discussed by which company can regain it’s image by launching of new
and efficient models. The battery replacement option can be used to solve the battery issue
faced by consumers. Expansion of Never mind scheme can be beneficial in attaining loyalty
of customers. The company can attain more options by research and development.
Innovations can be successful in creating more growth opportunities. The company can
improve it’s performance by utilising less resources on Touch Wiz UI. The company can
easily improve by removing complications of Galaxy S7 models. For this Samsung has
conducted research and implemented the safety system for batteries. Such complications are
just the chance to bring efficiency in the organisation.

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References
Aiello, L. and Cacia, C., 2015. Knowledge sharing and crowdsourcing as an enterprise
opportunity. In Encyclopedia of Information Science and Technology, Third Edition (pp.
4608-4617). IGI Global.
Dove, J., 2016. Evaluation of the suitability of the mobility common criteria protection
profiles for enterprise mobility management.
Henry, C., 2015. Doing well by doing good: opportunity recognition and the social enterprise
partnership. Journal of social entrepreneurship, 6(2), pp.137-160.
Jeong, B., Yoon, J. and Lee, J.M., 2017. Social media mining for product planning: A
product opportunity mining approach based on topic modeling and sentiment
analysis. International Journal of Information Management.
Jie, C.T. and Hasan, N.A.M., 2017. APPLE VERSUS SAMSUNG PATENT LAWSUIT: AN
ISSUE AND CRISIS MANAGEMENT APPROACH. International Journal, 2(5), pp.1-12.
Kim, C., 2016. Samsung, Media Empire and Family: A Power Web (Vol. 34). Routledge.
Kline, J.J. and Hutchins, G., 2017. Enterprise risk management: A global focus on
standardization. Global Business and Organizational Excellence, 36(6), pp.44-53.
Lee, S.J., 2014. Samsung Electronics and its growth strategy. Handbook of East Asian
Entrepreneurship, 336.
Najrani, M., 2016. The endless opportunity of organizational agility. Strategic
Direction, 32(3), pp.37-38.
Shamsi, A.F., Ali, M.H. and Kazmi, S.S., 2017. Samsung Note 7-An Unprecedented Recall
That Created History: Exploding Phones Recovered–Exploded Trust?. International Journal
of Experiential Learning & Case Studies, 2(1), pp.44-57.
Shin, J.S., 2017. Dynamic catch-up strategy, capability expansion and changing windows of
opportunity in the memory industry. Research Policy, 46(2), pp.404-416.

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Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
OUP Oxford.
Thompson, D., Peacock, O., Western, M. and Batterham, A.M., 2015. Multidimensional
physical activity: an opportunity not a problem. Exercise and sport sciences reviews, 43(2),
p.67.
Uhl, A. and Gollenia, L.A., 2016. Digital enterprise transformation: A business-driven
approach to leveraging innovative IT. Routledge.
YIN, J.F., YE, G.Y. and HUANG, S., 2017. Research on Opportunity Identification,
Organizational Identity Change and Diversified Development of Enterprise.
Zuoming, Z., Wei, L. and Ming, Y., 2014. A Study on the―Inverted U‖ Relationship
Between Open Innovation and Enterprise Innovation Capacity. Journal of Industrial
Technological Economics, 1(10).

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Appendices
Appendices 1:
Appendices 2:
The battery safety check has been defined in the above diagram of Samsung 2018. It includes
eight measures which can be kept in mind while doing check.
Appendices 3:

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